Jeevan Mangal, offered by Life Insurance Corporation, is a term assurance policy that has premium returns on maturity. The policyholder can pay premiums regularly or as a lump sum, depending on his preference. This insurance plan also comes with a double risk cover in terms of accidental death. This plan is customised to cater to the distinct needs of the lower strata of the Indian population.
Eligibility Criteria for LIC Jeevan Mangal
In order to purchase this micro insurance plan, the prospective policyholder has to fulfill certain conditions, as set by the Corporation. Here are some eligibility criteria:
|Minimum entry age||18 years (age as on last birthday)|
|Maximum age at entry||60 years|
|Maximum age at the policy’s maturity||70 years|
Key Features of the Jeevan Mangal Policy
Jeevan Mangal plan provided by LIC is a traditional micro insurance policy that offers dual benefit of protection and savings. Here are some prominent features of this policy:
|Type of plan||Non-participating endowment assurance plan that comes with guaranteed additions and benefits|
|Term of the policy||10 to 15 years (Regular premium) 10 years (Single premium)|
|Minimum sum assured||Rs 10,000|
|Maximum sum assured||Rs 50,000|
|Premium payment mode||Monthly, Quarterly, Half-yearly and Annually; Single|
|Look-in period||15 days|
Benefits of LIC Jeevan Mangal Plan
The endowment assurance policy provided by LIC is packed with a number of key benefits. A few of them have been mentioned as under:
- On death of the life insured during the term of the policy, his beneficiary is paid the sum assured under the basic, given the policy is kept in force.
- If the life insured survives the date of maturity, an amount equal to the total amount of premium, during the policy’s term is paid, given the policy is still active. This excludes the accident benefit premium and all extra premium paid for the rider.
- A grace period of two months is allowed for all payment modes in the insurance policy.
- This plan also comes with guaranteed surrender value, wherein the policyholder can give up the policy, at any time and cash will be paid by the Corporation.
- In case the policy lapses, due to infrequent premium payments, it can be revived within two years of the last payment.
- The Jeevan Mangal micro insurance plan has a cooling or free look-in period, where the policy can be returned within 15 days of purchase. The premium amount, post deduction of proportionate risk premium and stamp duty charges, will be reimbursed after the cancellation of the policy.
How does the Jeevan Mangal insurance Policy Work?
Mr Ravi, aged 35 and a non smoker, purchases a Jeevan Mangal policy for a maximum sum assured of Rs 50,000 for a period of 15 years. He pays Rs 1000 as premium on annual basis. On his survival of the policy term, he will be paid the basic sum assured along with amount equal to the sum assured and additional premiums.
The modes of premium payment for this micro insurance policy are monthly, quarterly, bi- annually, and yearly. Premiums can also be paid on weekly and fortnightly intervals. Single premium payments are only allowed for a ten year tenure.
LIC’s Jeevan Mangal policy has accidental benefit rider, on extra premium payment. On death of the life insured due to an accident during the policy’s term, an additional amount, that is equal to the accident benefit rider sum assured is paid to the nominee.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017